Banking Blog

Finance Blogs » Banking » Credit union lending outpaces savings

Credit union lending outpaces savings

By Allison Ross · Bankrate.com
Thursday, February 6, 2014
Posted: 10 am ET

In what could be a sign that the U.S. economy is recovering, credit unions are seeing lending outpace savings for the first time since 2007.

The Credit Union National Association reported Wednesday that credit unions saw loan balances rise 6.8 percent last year, up from 4.8 percent in 2012.

Meanwhile, growth in members' savings slowed down, with savings growing 4.3 percent in 2013 compared with 6.1 percent one year earlier.

Pent-up demand for autos helped contribute to the uptick in loans, according to Steve Rick, a senior economist with CUNA.

Rick said in a statement that pent-up demand for cars, furniture, appliances and other things that people have foregone buying will help grow credit unions' loan balances in the next two years.

CUNA expects loan balances to rise 7 percent this year. It expects credit union savings balances to grow 4 percent.

"On the savings side of the balance sheet, members continue to look for safe, short-term liquid deposit accounts," Rick said in the statement.

He notes that credit union membership is expected to cross the 100 million threshold sometime midyear. More people have been turning to credit unions in recent years, attracted by often lower fees than banks.

Have you taken out a new loan recently?

Follow me on Twitter: @allisonsross.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
Add a comment

(Comments may take 5-10 minutes to appear)